India’s GDP Growth Projected at 6.6% for FY27 by SBI Research

A research report by the State Bank of India has projected India's real GDP growth for the financial year 2026-27 (FY27) at 6.6 per cent. Real GDP growth measures the increase in the value of goods and services produced in a country after removing the effect of price rise (inflation). The projection was made despite global economic uncertainty and fluctuating crude oil prices.

The report noted that Scheduled Commercial Banks saw strong credit growth during FY26. This was driven mainly by higher consumption and economic activity linked to Goods and Services Tax (GST). Credit growth refers to the increase in loans given out by banks, which is an indicator of demand in the economy.

However, the report expects credit growth to slow down in FY27 because of the 'high base effect' — when growth in the earlier year is high, the same level of growth looks smaller in percentage terms the next year. Rising crude oil prices were flagged as a key risk, because higher oil prices can widen the current account deficit, push up inflation, and lower overall GDP growth.

For aspirants, important terms here are real GDP growth, credit growth, high base effect, and current account deficit, and the figure to remember is the 6.6 per cent FY27 projection.